saleandleaseback
Sale and leaseback is a financial arrangement in which an entity sells an asset to a buyer and immediately leases it back for a defined period. The seller receives cash from the sale but retains the right to use the asset under a lease, while the buyer gains a long-term lease income and ownership of the asset. The structure is commonly used for real estate, equipment, and other capital assets, allowing the seller to unlock liquidity without disrupting operations.
Accounting treatment varies by jurisdiction and standards. Under many frameworks, if the sale transfers control of
Rationale and uses include liquidity generation, balance sheet optimization, and risk management. Lease payments provide predictable
Risks involve ongoing lease commitments, potentially higher total cost of use, credit risk of the counterparty,